Last week, the European Chamber of Commerce in China organized a forum about HR best practices in China.

Talent acquisition and retention is one of the major challenges of  companies that have an office in China, so I thought my notes might be of interest to some readers.

First presentation: How to attract talent as an SME in China

By Christine Raynaud, CEO, MRIC, and based on insights from the MRIC Talent Report.

More maturity on the candidates’s side

Nowadays, employers are evaluated and need to pay attention to the way good candidates see them. The best ways to project a good image are:

1. Meeting with senior leadership
2. Company image

Note: brand recognition plays a lower role than in the past, since candidates are more capable of evaluating a company on other criteria.

Why people change jobs

Top three reasons:

1. Money
2. Clearer career path
3. Immediate promotion

Note: good CSR programs are not a reason for selecting an employer

Why people are staying in a job

Top two reasons:

1. Career advancement
2. Work-life balance (it is No. 1 for women)

Note: men are more interested in the salary level and the speed advancement. (Interestingly, in Hong Kong the opposite is true.)

What makes a “good employer”

Top three traits of a good employer:

1. High integrity leadership: taking good care of people in a benevolent and fair manner, in a manner inspired by the Confucian thought (clear No. 1)
2. Culture of trust and respect among employees
3. Strong and capable leadership

Note: local private companies are rated higher on the high integrity leadership criterion.

Advantages of SMEs

• Leader can show that they take care of employees
• Opportunity to work with senior leadership and to
• SMEs are not at a disadvantage in social media marketing (which can improve a company’s image)

A few good HR practices

• Explain the project and the challenges in the job description
• Involve senior management early in the recruitment process
• Give schedule flexibility to young mothers

Second presentation: Defining Employee Roles, Responsibilities and Compensation for SMEs in China

Presented by Cindy Jensen, consultant.

Different generations in the workforce

Chinese in their early twenties consider those 5 years later to be part of an older generation (with different values and aspirations).

Generation Y (mid twenties to mid thirties)

• They tend to be energetic and active. The key to retention is often employee engagement.
• They are more independent than their parents, but make major decisions based on what their parents think of their job.
• They have strong pressure from their parents to marry, have kid(s), and support their family.

Ages 37 to 45

• They have a better understanding of the management style they want to work with — they are often used to an authoritative style but understand its limits.
• They might not want to be on the “fast track”.
• The greatest income earner is expected to support the burden of his/her parents on his/her own.
• They are already thinking of retirement.

The key to retention (if a high salary is not an option) is to adapt to the employee’s needs:

• Building the right culture and giving attention to internal communication
• Opportunities to learn on topics of interest to the employee
• Giving regular and constructive performance reviews
• Flexible working hours for ladies with kids

A good way of avoiding high salaries is to “hire out of the box” and not be afraid to hire someone without industry experience or without “the right degree”.